State regulation of entrepreneurial activity in the Republic of Moldova: an obstacle or an advantage for entrepreneurs?

Abstract

The entrepreneurial ecosystem of the Republic of Moldova is still at the stage of formation. The observed trend of growth in the number of small and medium-sized enterprises is not accompanied by a qualitative growth of enterprises. This indicates the underdevelopment of key components of the entrepreneurial ecosystem, one of which is the state regulation of entrepreneurial activity. The development of the entrepreneurial ecosystem in the country directly depends on the regulatory framework that the state creates for business. The article describes the main directions of the state policy to reduce regulatory pressure on business in the Republic of Moldova, as well as some results of a survey of entrepreneurs to assess the factors of such a component of the entrepreneurial ecosystem, as the regulatory and normative framework. The survey was carried out as part of the applied research project 20.80009.0807.38 „Multidimensional assessment and development of the entrepreneurial ecosystem at the national and regional level in order to boost the SME sector in the Republic of Moldova‖, financed from the state budget of the Republic of Moldova, in AprilMay, 2021. The results of the survey of entrepreneurs showed that despite the measures taken by the state over the last years to ease the regulatory burden on business, entrepreneurs still consider the legal framework and regulation a serious barrier. So, practically by all evaluated factors, negative evaluations exceed positive ones. Consequently, the state authorities of the Republic of Moldova should continue to implement measures within the framework of the reform of the regulatory framework of entrepreneurial activity with the goal of creating a favorable business climate in the country.